Why is the United States in the Middle East Anyways?

There are hundreds of countries in the world – each year, a couple are added or the names are changed. But for some reason, the United States news is dominated by the Middle East. Why?

In a world of so many regions, why do we see so many stories about the United States and the Middle East? Why did the United States tie its own currency to the petroleum in the Middle East, calling it the “petrodollar?” Does any of this have to do with energy?

“The Spice Must Flow”

The “Dune” movie discussed a fantasy empire centered upon the all-important “spice.” The spice was needed for space travel. It allowed the imperial power to maintain control. Is there anything on Planet Earth that is similar to spice?

The British empire ran on coal. The United States empire runs on petroleum. Whether you want to admit it or not, all those aircraft carriers used to invade Japan and win World War II would not have succeeded without oil. Thus, oil (as an energy source) is necessary to run an empire.

So, as the American empire expands, it needs more oil. As it contracts, oil demand goes down. That is what is so disconcerting about the North Dakota oil production declines.

“North Dakota Energy Sector Shows Slowdown”

In September 2016, the North Dakota oil production fell through the critical one million barrel mark. It had been nearly two and a half years before that date when North Dakota oil production had broken upwards through the one million barrel mark. Given this fact and declining oil prices, some think the global economy is collapsing.

“How Can Gold Protect You?”

Since the 1948 Bretton Woods agreement, the United States has been the leader of Capitalism. If Capitalism is waning, then the nation might experience some tough times. An important issue is the “petrodollar.” How can a nation be healthy if its economic production is tied to a waning commodity, like oil? If North Dakota oil production declines, doesn’t that mean the petrodollar will decline?

In terms of purchasing power, the petrodollar is declining. The United States is finding it more difficult to sell its Treasury Notes. When you are uncertain about the economic future, you should turn to gold.

US Money Reserve sells gold products to its clients, who are interested in wealth management. With gold, you can weather in economic storm.

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